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BLIMPIE FLOATS SMOOTHIE ISLAND CONCEPT OUT TO SUPERMARKETS

ATLANTA -- No man is an island, and neither is a quick-service beverage concept.That is the attitude officials at Blimpie International are taking as they roll out Smoothie Island this month, the sub sandwich chain's latest food-service enterprise under its newly formed Maui Tacos subsidiary based here.Besides co-branding the fresh-beverage concept with existing Blimpie Subs & Salads and future Maui

Bob Vosburgh

June 8, 1998

3 Min Read
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ROBERT VOSBURGH

ATLANTA -- No man is an island, and neither is a quick-service beverage concept.

That is the attitude officials at Blimpie International are taking as they roll out Smoothie Island this month, the sub sandwich chain's latest food-service enterprise under its newly formed Maui Tacos subsidiary based here.

Besides co-branding the fresh-beverage concept with existing Blimpie Subs & Salads and future Maui Tacos units, the company is targeting non-traditional outlets, such as supermarkets and convenience stores, for freestanding franchises.

"Smoothies are actually a hot brand," said Greg Bennett, vice president of operations for Maui Tacos. "It's this health kick that everybody's on, and it's just this hot wave that is generating all kinds of interest out there."

Part of the concept's appeal is its small footprint, which averages 70 square feet. The setup consists primarily of a 7-foot-long service counter and a production area behind it, where the novelties are prepared. The back bar also includes the menu board and merchandising space.

"This will help accommodate those folks who don't have very many square feet to work with," said Bennett.

The beverage-only menu and the use of preportioned frozen fruits and liquid yogurt reduces labor needs and streamlines the unit's operation. The actual cost of goods is "right under 31%," according to Bennett.

Franchisees will also have the opportunity to sell retail packages of the energy- and immune-boosters used in the beverages. The unnamed program, still under development, might range from single-dose foil packs to larger bottles of individual vitamins and nutritional supplements.

Bennett said price points would be "very competitive" with similar products found in health and beauty care aisles. "We're buying directly from the manufacturer and then just retailing them to the public."

The public's unquenchable thirst for smoothies led the Blimpie executives to put their concept on a fast track with the goal of making it affordable. Typical units cost $20,000, and are engineered to operate using two blenders and a refrigerator/ freezer cabinet, as arranged through B I Concept Systems, Blimpie's design and equipment division.

Smoothie Island's menu is comprised of 18 beverage varieties divided into four sections: Low-Fat Smoothies, Brain Food Concoctions, Immune Builders and Work-Out Smoothies. Each is made with fruit juices mixed with plain yogurt or sorbet. Optional nutritional supplements such as ginseng or bee pollen can be added to reinforce the brand's healthy image, said Bennett.

"Beverages are always a good profit [center] for restaurants in general," he said, adding that his company's research shows that consumers see smoothies as a "meal-replacement" option. The high traffic patterns in retail environments like supermarkets would therefore be ideal locations for the operation, where an "on-the-go" attitude prevails.

The suggested retail price for a 22-ounce smoothie is $2.99 without a supplement, or $3.99 if something like ginseng is added. According to Bennett, the use of a single-serving size contributes to higher profit potential.

"One size [is] available, making the operation simple, quick and efficient," said Bennett. "You take fruits, ice and you mix [them] with either yogurt or sorbets, and you put it in a blender for 20 seconds, pour it in a cup and you're done."

All the ingredients used in the smoothie line will be delivered through the existing network of food-service distribution companies that currently services the more than 1,900 Blimpie Subs & Salads stores in the United States.

From the company's perspective, the co-branding of Smoothie Island and traditional Blimpie units will help extend sales through the dinner daypart. According to Bennett, the majority of smoothies traffic is generated after the lunch hour rush, when Blimpie sales start to slide off.

Likewise, the smoothie's image as being a healthy alternative to traditional beverages helps to strengthen Blimpie's new marketing campaign highlighting the core sandwich line's low-fat options.

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